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Informist, Tuesday, Aug. 18, 2026

NEW DELHI – The Supreme Court Tuesday said it will decide on the implementation of the Bombay High Court's order directing the government to release bank guarantees worth INR 33 billion to Bharti Airtel Ltd. and Vodafone Idea Ltd. It, however, refused to pass an immediate order on the release of the bank guarantees. "In an appeal filed by the appellant (government), can the respondent fly away with relief?" the court remarked.

The court said it will hear the government and then decide. However, it said it has not stayed the Bombay High Court's order. If the government releases the bank guarantees on its own, that is its choice, the court added.

On Aug. 7, the Supreme Court had refused to stay the Bombay High Court's order setting aside the government's demand orders seeking payment of one-time spectrum charge from Bharti Airtel Ltd., Vodafone Idea Ltd., and others for the period from 2008 to 2012. The apex court had issued notices to Bharti Airtel, Vodafone Idea, and others on the government's appeal against the high court order. The government has argued that the case has financial implications with spectrum demand exceeding INR 250 billion against all the telecom companies.

On Jun. 8, the Bombay High Court had said the government was unable to justify the decision and its action of levying a one-time spectrum charge retrospectively upon Bharti Airtel and Vodafone Idea. Consequently, bank guarantees, if any, given by the telecom companies must be returned by the government, the high court had ruled.

Bharti Airtel's annual report for the year 2025 had disclosed a contingent liability towards a one-time spectrum charge of INR 66 billion. Its total liability towards one-time spectrum charge rose to INR 165 billion as of Mar. 31, 2025, including interest of INR 99.54 billion. Vodafone Idea's exposure was INR 75.81 billion, as per its annual report. However, it was not clear whether that amount included interest. The amount could increase based on interest calculations.

Bharti Airtel and Vodafone Idea had moved the high court, being aggrieved by the imposition of the one-time spectrum charge by the government in the year 2012 for spectrum held above 6.2 MHz from the year 2008 onwards. The telecom companies had said the government had no power to impose such a one-time spectrum charge, that too retrospectively. The telecom companies said neither was such a source of power found in the relevant statutory provision, Section 4 of the Telegraph Act, 1885, nor in the licence agreements for allocation and use of spectrum executed between the petitioners and the government from time to time.

Tuesday, shares of Vodafone Idea ended at INR 14.12 on the National Stock Exchange, up 3% from Monday. Shares of Bharti Airtel ended at INR 1,934.20, down 1.8%.  End

Reported by Surya Tripathi

Edited by Himanshi Gupta

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